Are you making rookie mistakes while buying diamonds? You might not even know that the purchase you made cost you much more than it should have. But that is only the first of many rudimentary errors people make while purchasing diamonds.
From flamboyant expectations to choosing the wrong kind, there is no dearth of ways in which your perception could fool you, when buying a diamond is concerned.
Here are 3 ways in which you might be making a mistake:
Paying Too Much
The mantra of “buy low, sell high” should be your guiding light whenever you plan to invest in anything, though when it comes to diamonds, it can be challenging to “buy low.” There’s tax so, unless you buy from non-Vat areas or through VAT-registered businesses, you will be losing 20% of the investment or whatever tax rate your country of purchase upholds instantaneously.
Then there are retailer mark-ups and hidden costs. It might sound enticing to lock up a bunch of loose diamonds in a safe but eventually, you will want to flaunt them. Thus arises the question of mounting them in a setting which will probably be worth scrap metal pieces only. Lastly, it is essential to have your diamond insured, but that will chip away at your investment returns as well.
Expecting too much
Most think of diamonds as a meager get-rich-quick scheme, but the truth is otherwise. Diamonds will take time to enhance in their value and expecting short-term results might be tomfoolery. These elegant gemstones are no short of commodities and it is best to treat them accordingly. Their value can go up or down, though solely depending on past performance, upwards is usually the more probable way- albeit slowly. In short, if you are buying diamonds to reap short-term benefits, think twice.
Prepare to have your investment locked up for a while before you start seeing the pros. It is not impossible to sell diamonds at a short time frame but the selling rate will simply not match up to your purchase price, let alone warrant an appreciation.
Buying the Wrong Kind
Some diamonds will be easier to resell and at far better prices, so investing is never a bad idea. But make sure it is rightfully certified, and by that, we mean independently certified. You will get tons of questionable certificates from diamond stores which could make reselling it harder. Go for diamonds certified by highly reputable labs to ensure you are secure for the good part of the future.
As for the shape, round brilliant still remains one of the most popular cuts so investing in them gives you more access to the resale buyer’s market. Even if not round, opt for some popular cuts, such as the princess cut. The bottomline is, always check for the best quality, and do not compromise with any aspect. Aim for above-average clarity and color and an excellent cut grade, and you should be good to go!